/raid1/www/Hosts/bankrupt/TCRAP_Public/240726.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, July 26, 2024, Vol. 27, No. 150
Headlines
A U S T R A L I A
ALLSITE AUSTRALIA: First Creditors' Meeting Set for July 31
LOVING EARTH: Second Creditors' Meeting Set for July 31
MAXIMUS HOLDINGS: Second Creditors' Meeting Set for July 31
PANORAMIC RESOURCES: Plans to Move Second Creditors Meeting
PINDAN EXPLORATION: Second Creditors' Meeting Set for July 30
QUEENSLAND NICKEL: Creditors Paid in Full, Liquidator Says
UNION STANDARD: ASIC Bans Director Pedro Sasso for 5 Years
W G & F L: Second Creditors' Meeting Set for Aug. 1
[*] ASIC Insolvency Data Shows Increase in Companies Failing
C H I N A
BINHAI INVESTMENT: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
CHINA GRAND: Rebuts Claims it is Reluctant to Prevent Delisting
[*] CHINA: Members of Bankrupt Gym Get Refunds Using E-Yuan
I N D I A
ANAND RICE: CARE Keeps D Debt Rating in Not Cooperating Category
ARCOTECH LIMITED: CARE Keeps D Debt Rating in Not Cooperating
B. J. GRAIN: CARE Keeps D Debt Rating in Not Cooperating Category
BALDOVINO: CRISIL Keeps D Debt Ratings in Not Cooperating
BIYANI SHIKSHAN: CRISIL Moves D Debt Rating to Not Cooperating
BRIJ ENGINEERING: CARE Keeps C/A4 Debt Ratings in Not Cooperating
CREATIVE CLOTHEX: CARE Keeps C Debt Rating in Not Cooperating
DEESAN COTEX: CARE Keeps D Debt Ratings in Not Cooperating
FINAXAR TECHNOLOGY: Voluntary Liquidation Process Case Summary
GEETA TEXTILE: CARE Keeps D Debt Rating in Not Cooperating
GUJARAT INFRA: CRISIL Reaffirms B+ Rating on INR20.5cr Loan
HI TECH AIR: Insolvency Resolution Process Case Summary
KALPANA NATURAL: CRISIL Keeps D Debt Ratings in Not Cooperating
KALYANI CONSTRUCTION: CARE Keeps D Debt Rating in Not Cooperating
KAMAKSHI STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
MAHESVARA CASHEW: CARE Keeps C Debt Rating in Not Cooperating
MOUNTAIN EDGE: Liquidation Process Case Summary
MUTYAM STEEL: CRISIL Upgrades Rating on INR25cr Debt to B+
NAMITA RICE: CARE Lowers Rating on INR6.75cr LT Loan to C
PHOTON ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating
PVSRSN ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating
R R TRENDS: CRISIL Lowers Rating on INR23cr Cash Loan to B+
RA FASHIONS: CRISIL Keeps D Debt Ratings in Not Cooperating
REDDY VEERANNA: CRISIL Keeps D Debt Ratings in Not Cooperating
REHBER FOOD: CARE Lowers Rating on INR56cr LT Loan to D
RUBYKON MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
SAEL RG1: Fitch Assigns 'BB+(EXP)' Rating on New USD Secured Notes
SHYAM BEARINGS: CRISIL Keeps D Debt Ratings in Not Cooperating
SUPREME POLYTUBES: CARE Keeps D Debt Ratings in Not Cooperating
J A P A N
KOBAYASHI PHARMACEUTICAL: Oasis Buys 5% Stake in Drugmaker
MT GOX: Creditors Get Crypto Repayments After Decade of Waiting
N E W Z E A L A N D
ATEYA BUILDERS: Creditors' Proofs of Debt Due on Aug. 23
GROWING SPACES: Court to Hear Wind-Up Petition on Aug. 2
R&V SHAREHOLDING: Creditors' Proofs of Debt Due on Aug. 26
REETEC WINDOWS: Court to Hear Wind-Up Petition on Aug. 16
SRD HOLDINGS: Creditors' Proofs of Debt Due on Aug. 14
S I N G A P O R E
BIGTOYS ASIA: Court to Hear Wind-Up Petition on Aug. 16
LIPPO MALLS: Fitch Lowers IDR to 'C' on Distressed Debt Exchange
MIDAS INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 16
SCSC SINGAPORE: Court Enters Wind-Up Order
S O U T H K O R E A
QOO10 GROUP: FTC Inspects Units as Bankruptcy Jitters Escalate
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A U S T R A L I A
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ALLSITE AUSTRALIA: First Creditors' Meeting Set for July 31
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Allsite
Australia Pty Ltd will be held on July 31, 2024, at 10:00 a.m. via
virtual facilities.
David Coyne of BRI Ferrier was appointed as administrator of the
company on July 22, 2024.
LOVING EARTH: Second Creditors' Meeting Set for July 31
-------------------------------------------------------
A second meeting of creditors in the proceedings of Loving Earth
Pty Ltd has been set for July 31, 2024 at 11:00 a.m. via
teleconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 30, 2024 at 4:00 p.m.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on June 26, 2024.
MAXIMUS HOLDINGS: Second Creditors' Meeting Set for July 31
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Maximus
Holdings (NSW) Pty Limited has been set for July 31, 2024 at 11:00
a.m. at the offices of HoganSprowles at Level 9, 60 Pitt Street in
Sydney and via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 25, 2024 at 4:00 p.m.
Michael Hogan and Christian Sprowles of HoganSprowles were
appointed as administrators of the company on June 25, 2024.
PANORAMIC RESOURCES: Plans to Move Second Creditors Meeting
-----------------------------------------------------------
TipRanks reports that Panoramic Resources Limited, currently under
voluntary administration, has announced a scheduled second
creditors' meeting via videoconference for July 30, 2024.
TipRanks relates that administrators have expressed their intent to
adjourn this meeting for up to 45 business days to finalize
negotiations for a potential Deed of Company Arrangement with an
interested party, which they believe is in the best interest of
creditors.
About Panoramic Resources
Panoramic Resources Limited (ASX:PAN) --
https://panoramicresources.com/ -- is a mining company that
explores for and mines copper, nickel, and cobalt in the Kimberley
region of Western Australia.
On Dec. 14, 2023, Daniel Woodhouse, Hayden White and Kate Warwick
of FTI Consulting were appointed as Joint and Several
Administrators of Panoramic Resources Limited and its subsidiaries,
Savannah Nickel Mines Pty Ltd and PAN Transport Pty Ltd.
The Administrators were subsequently appointed as Joint and Several
Administrators to Pindan Exploration Company Pty Ltd, a wholly
owned subsidiary of Panoramic, by a resolution of its Directors on
Jan. 15, 2024.
PINDAN EXPLORATION: Second Creditors' Meeting Set for July 30
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Pindan
Exploration Company Pty Ltd has been set for July 30, 2024 at 3:00
p.m. via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 29, 2024 at 5:00 p.m.
Daniel Hillston Woodhouse, Hayden Leigh White and Kathryn Guinivere
Warwick of FTI Consulting were appointed as administrators of the
company on Jan. 15, 2024.
QUEENSLAND NICKEL: Creditors Paid in Full, Liquidator Says
----------------------------------------------------------
ABC News reports that after eight years of financial heartbreak and
court battles, the liquidator of Clive Palmer's former Queensland
Nickel refinery said it has paid the company's creditors in full.
The Yabulu Nickel Refinery, owned by Queensland Nickel Industries,
was the Townsville region's largest private employer when it
collapsed in 2016, owing hundreds of millions of dollars.
More than 700 workers lost their jobs.
According to the ABC, liquidator FTI announced on July 24 that
outstanding creditors had been paid AUD300 million - a full
settlement of claims, it said.
The ABC relates that FTI senior managing director Kelly Trenfield
said when FTI was first appointed, it estimated QNI owed about
AUD800 million.
Many of those claims had been settled, removed or reduced over the
past eight years.
She said recovering the final AUD300 million owed to creditors had
been a long process, the ABC relays.
FTI said it had distributed federal government payments of AUD70
million to nearly all 787 former QNI employees.
There were about 1,500 creditors in total, including local
infrastructure suppliers including rail, power and ports, according
to Ms. Trenfield.
In 2019, the Townsville City Council launched legal action to
recover AUD2.5 million from QNI Metals Propriety Limited and QNI
Resources, claiming the companies had not paid their rates or
charges at the Yabalu refinery or a property since 2016, the ABC
recalls.
A spokesperson for the council confirmed on July 24 that payment
for outstanding rates and charges was received in August 2020.
The ABC says Queensland Nickel's liquidators had pursued Mr.
Palmer's companies since the QNI collapse, prompting lengthy court
battles with the billionaire.
Ms. Trenfield said the largest amount of money recovered was AUD102
million, from Mr. Palmer's company Mineralogy.
She said there were court proceedings to be finalised before the
liquidation could conclude, but indicated the end was in sight, the
ABC adds.
About Queensland Nickel
Queensland Nickel was engaged in the production and marketing of
nickel and cobalt. It owned and operates the Palmer Nickel and
Cobalt Refinery in Queensland, Australia. It is owned by
businessman and politician Clive Palmer.
The Company experienced financial difficulties and Palmer sought
assistance from the Queensland Government in late 2015 but was
rejected. The Company's ownership was later transferred to a new
company named Queensland Nickel Sales Pty Ltd in a joint venture
between two of Clive Palmer's companies, QNI Resources Pty Ltd and
QNI Metals Pty Ltd, with the directorship going to Palmer's nephew
Clive Theodore Mesnick.
On Jan. 19, 2016, the Company entered into voluntary
administration. John Park, Stefan Dopking, Kelly-Anne Trenfield and
Quentin Olde of FTI Consulting were appointed as voluntary
administrators of the Company.
FTI as administrators issued a report in early April 2106 that the
Company "incurred debts of AUD771 million after going insolvent in
November [2015]."
On April 22, 2016, the Companies' creditors voted for liquidation.
FTI went from being administrators to liquidators at the second
creditors meeting in April 2016.
UNION STANDARD: ASIC Bans Director Pedro Sasso for 5 Years
----------------------------------------------------------
Pedro Eduardo Sasso, the director of Maxi EFX Global AU Pty Ltd
(EuropeFX), has been banned by ASIC from being a director of or
controlling an entity that carries on a financial services
business.
EuropeFX was the corporate authorised representative (CAR) of
former Australian financial services licensee, Union Standard
International Group Pty Ltd (in liquidation) (USG).
EuropeFX offered retail clients access to over-the-counter (OTC)
derivative products issued by USG, including
contracts-for-difference (CFDs).
ASIC found that it has reason to believe Mr Sasso is not competent
to act as an officer of a financial services business nor a fit and
proper person in this respect and should be banned from performing
this function for a period of five years.
ASIC found that Mr Sasso:
* exercised very little oversight of EuropeFX's operation and
did not take steps to mitigate or address any problems within the
operation of the business,
* abrogated his responsibilities for supervision and oversight
to persons offshore, without any organised and proper monitoring
structures in place, and
* failed to address or take adequate steps to investigate issues
that arose particularly in relation to client complaints.
Mr. Sasso's banning order took effect on May 6, 2024. He then
applied on May 8, 2024 to the Administrative Appeals Tribunal (AAT)
for a review of ASIC's decision, as well as for stay and
confidentiality orders. Following an interlocutory hearing on June
25, 2024, the AAT issued a decision on 23 July 2024 refusing Mr.
Sasso's application for stay and confidentiality orders.
Mr. Sasso's banning is recorded on ASIC's banned and disqualified
register.
Mr. Sasso was a director of EuropeFX from March 28, 2018 to Sept.
20, 2018. Since April 30, 2019, Mr Sasso has been the sole director
of EuropeFX.
On July 8, 2020, USG entered into voluntary administration and on
Sept. 3, 2020 liquidators were appointed to it.
In July 2020, ASIC suspended the AFS licence of USG and in
September 2020, ASIC cancelled USG's AFS licence.
On Dec. 10, 2019, ASIC took action against USG in the Federal Court
of Australia pursuant to section 1323 of the Corporations Act. On
Dec. 10, 2020, ASIC commenced civil penalty proceedings against USG
and its former CARs, EuropeFX and TradeFred. On Aug. 25, 2023, the
trial in respect of liability concluded and judgment is currently
reserved.
W G & F L: Second Creditors' Meeting Set for Aug. 1
---------------------------------------------------
A second meeting of creditors in the proceedings of W G & F L
Fischer Pty Limited has been set for Aug. 1, 2024 at 10:00 a.m. at
the offices of Bernardi Martin at Ground Floor, 195 Victoria Square
in Adelaide.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 1, 2024 at 9:00 a.m.
Michael van Dissel of Bernardi Martin was appointed as
administrator of the company on June 30, 2024.
[*] ASIC Insolvency Data Shows Increase in Companies Failing
------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC)'s annual
insolvency data shows more than 11,000 companies entered external
administration for the first time in 2023-24. While this is
slightly higher than prior peaks seen in 2011–12 and 2012–13,
it is proportionately smaller as there are now nearly 3.4 million
companies in Australia compared to around two million in 2012.
The current ratio of companies entering external administration
compared to the number registered (0.33%) is still below 2012-2013
(0.53%) levels.
Overall, the number of external administrations grew by 39% in
2023–24 compared to 2022–23. The top three industries -
Construction (27%), Accommodation and Food Services (15%) and Other
Services (9.3%) represented over half of total external
administrations for 2023–24.
Restructuring appointments grew by over 300% in 2023–24 compared
to 2022–23 and now represent 12.9% of all external
administrations.
Small business restructuring allows eligible companies - those
whose liabilities do not exceed $1 million plus other criteria - to
retain control of its business while it develops a plan to
restructure its affairs. This is done with the assistance of a
restructuring practitioner with a view to entering into a
restructuring plan with creditors.
Of the 573 companies that entered restructuring after Jan. 1, 2021
and had completed their restructuring plan by June 30, 2024, 89.4%
remain registered, 5.4% have gone into liquidation (one company had
entered into a Deed of Company Arrangement) and 5.2% were
deregistered as at June 30, 2024.
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C H I N A
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BINHAI INVESTMENT: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed China-based city-gas operator Binhai
Investment Company Limited's Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable.
Fitch has also affirmed Binhai's senior unsecured rating at 'BB+'.
Binhai's ratings are based on a one-notch uplift from its
Standalone Credit Profile (SCP) of 'bb', reflecting its strong
expectation of support from the Tianjin municipal government under
Fitch's Government- Related Entities (GRE) Rating Criteria.
Binhai is 40.3% owned by TEDA Investment Holding Company Ltd, which
is in turn fully owned by the Tianjin State-owned Assets
Supervision and Administration Commission. Fitch looks through TEDA
and apply the GRE criteria directly to Binhai, as we believe the
Tianjin government has ultimate control over Binhai and can provide
support directly if needed, while TEDA will not prevent Binhai from
receiving timely support.
The 'bb' SCP takes into account stable cash flow generation from
retail gas sales and moderate leverage, but is constrained by
Binhai's small operating scale and geographical asset
concentration.
KEY RATING DRIVERS
Recovery in Gas Dollar Margin: Fitch expects Binhai's 2024 dollar
margin to stay high after recovering to HKD0.52/cubic metre (cbm,
including a government subsidy) in 2023, from HKD0.42/cbm in 2022,
on the full-year effect of a higher residential gas tariff and drop
in gas procurement costs. Management said Binhai's new gas supply
contracts for imported liquefied natural gas (LNG) and coalbed
methane are at competitive prices. Fitch expects global LNG prices
to drop, which means the new contracts can help Binhai to diversify
its gas sources and keep costs low.
Fitch forecasts a lower dollar margin for industrial users as
Binhai may pass through the cost decline to users to boost demand.
This and a higher contribution from lower-margin gas power plants
will lead to a slightly lower margin in the near term, but Fitch
expects the long-term margin to rise as the residential dollar
margin widens further with lower gas costs. Fitch does not expect a
cut in the residential tariff as the pricing mechanism cost is
linked to the cost of procuring from national oil companies, which
Fitch does not expect to drop in line with global LNG prices in
2024.
Fewer Connections, More Stable EBITDA: Fitch expects connection
contribution to EBITDA to decline below 20% from 2025, while the
share of the more stable gas sale and transmission segments will
rise above 75%. Connections have already dropped to 28% in 2023,
from over 40% historically. The transition will lead to slower
EBITDA growth in the near term, but will bring greater stability to
cash flow, improving Binhai's business profile.
Fitch expects residential connection volume to decline by an
additional 28% in 2024 after a 6% drop in 2023, as property sales
continue to fall. Fitch expects Binhai's expansion to slow, similar
to other city-gas distributors, which will lead to lower capex, but
also fewer new connections.
Resilient Gas Sales Growth: Fitch expects similar gas sales growth
in 2024 from 2023, driven by higher demand from gas-fired power
plants and the contribution from newly signed large industrial
users. Binhai's gas sales growth has been stronger than peers
mainly due to its active expansion of the industrial user base,
especially large industrial users, and relatively small base.
However, Fitch expects sales growth to slow after 2024 due to the
larger base and slowdown in expansion.
Modest Leverage: Binhai's EBITDA net leverage fell to 4.0x in 2023
on 11% EBITDA growth, improving working capital and lower capex.
EBITDA growth was led by higher gas volume and the dollar margin
recovery. Fitch expects flat EBITDA in 2024 as gas sales volume
growth will be offset by the connection decline. This and lower
working-capital inflow will widen its negative free cash flow from
2023, raising EBITDA net leverage to 4.2x in 2024 before rising
further to 4.5x in 2025 as gas volume growth slows. Still, the
leverage is modest compared with 'bb' category utility peers.
Strong Responsibility to Support: Fitch assesses the Tianjin
government's decision-making and oversight as 'Strong'. It approves
Binhai's major financing and investing decisions through TEDA or
directly, and monitors its financial performance through monthly
reports. Fitch assesses its precedents of support as 'Strong',
reflecting the state's support for Binhai's predecessor, Wah Sang
Gas Hld Ltd, between 2004 and 2009 when the company was in
distress. The government also coordinated with offshore lenders on
the refinancing of Binhai's US dollar bond that matured in 2020.
Strong Preservation of Policy Role: Fitch assesses the preservation
of government policy role as 'Strong'. Binhai is a key gas supplier
with 10 concessions in Tianjin and a growing presence. Gas accounts
for around 20% of energy consumption in Tianjin and is a key source
of heating. Binhai's users include key industrial manufacturers,
centralised heating, gas-fired power plants and rural households.
Its natural monopoly for gas supply means there will be no
immediate substitute should Binhai default, which would lead to
disruptions in industrial activity and affect the wellbeing of
local residents.
Contagion Risk: Fitch assesses the contagion risk of a Binhai
default as not strong enough mainly due to its small size compared
with other GREs in Tianjin and the lack of capital-market debt.
DERIVATION SUMMARY
Fitch rates Binhai on a bottom-up basis and one notch above the SCP
under its GRE rating criteria based on its GRE support score and
the difference between its SCP and its internal assessment of the
sponsor. Fitch assesses Binhai's decision-making and oversight,
precedents of support and preservation of government policy role
factors as 'Strong', whereas contagion risk is not strong enough.
Binhai's four key risk factors are assessed the same as that for
Beijing Environment Sanitation Engineering Group Co., Ltd.
(BBB+/Negative).
Binhai's SCP of 'bb' is weaker than Foran Energy Group Co.,Ltd.'s
(BBB+/Stable) 'bbb-'. Both are regional city-gas distributors, with
most of the gas sales from their home markets. Foran Energy's gas
sales volume of 4.8 billion cbm is much higher than Binhai's 1.6
billion cbm, while Binhai has greater diversification
geographically with more projects outside its home market. Foran
Energy also has much stronger financials, with EBITDA net leverage
of 2.6x and EBITDA interest coverage of over 7.0x.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Gas sales volume growth of 12% in 2024 before slowing to 1%-3% in
2025-2027.
- Gas sales dollar margin of HKD0.50/cbm in 2024, HKD0.51/cbm in
2025 and HKD0.53/cbm in 2026-2027.
- New residential household connections to decline by 28% in 2024
and 5% per annum in 2025-2027.
- Gas transmission volume to rise by 21% in 2024 on strong recovery
of gas-fired power plant utilisation. Volume to rise by 4%-9% in
2025-2027.
- Cash capex (excluding capitalised interest) of HKD540 million-580
million per annum in 2024 to 2027.
- Dividend payout ratio of 40%.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- EBITDA net leverage sustained below 4.0x;
- Higher likelihood of support from Tianjin municipality;
- Higher internal assessment of Tianjin municipality's
creditworthiness.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Lower likelihood of support from Tianjin municipality;
- Lower internal assessment of Tianjin municipality's
creditworthiness in conjunction with Binhai's EBITDA net leverage
at above 5.0x for a sustained period.
LIQUIDITY AND DEBT STRUCTURE
Satisfactory Liquidity: Binhai had short-term debt of HKD1.8
billion at end-2023, of which HKD889.3 million was from its US
dollar syndicated loan, which has already been refinanced by a new
syndicated loan in June 2024. Binhai had readily available cash of
HKD808.4 million, short-term bank deposits of HKD127.0 million and
undrawn loan facilities of HKD1.4 billion at end-2023, which are
more than enough to cover the remaining short-term debt.
Fitch expects working-capital loans to be rolled over, given the
company's good track record and solid operating performance. Its
operating cash flow generated by project loans can easily cover the
amortisation of project loans. Binhai's funding access improved
further as it secured sizeable new project loans at a low cost in
2024 to fund its capex.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Binhai's IDR benefits from a one-notch uplift due to the Tianjin
municipality's support, according to Fitch's GRE criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Binhai Investment
Company Limited LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
CHINA GRAND: Rebuts Claims it is Reluctant to Prevent Delisting
---------------------------------------------------------------
Caixin Global reports that China Grand Automotive Services Group
Co. Ltd., one of the country's largest auto dealers, has rebutted
skeptics who have accused the firm of being reluctant to take
action to boost its stock price, which has fallen below a threshold
that triggers a forced delisting.
Caixin relates that some market observers argued that with more
than CNY10 billion ($1.37 billion) of monetary capital in hand,
Grand Automotive should be able to make share repurchases to revive
its stock.
China Grand Automotive Services Group Co., Ltd. operates as an auto
dealership. The Company sells luxury passenger cars, second hand
cars, and auto parts. China Grand Automotive Services Group also
conducts vehicle maintenance and financial leasing businesses.
As reported in the Troubled Company Reporter-Asia Pacific in late
September 2023, Fitch Ratings has downgraded China-based auto
dealer China Grand Automotive Services Group Co., Ltd.'s (CGA)
Long-Term Issuer Default Rating (IDR) to 'CCC-', from 'CCC+', and
senior unsecured rating to 'CCC-', from 'CCC+', with a Recovery
Rating of 'RR4'.
The downgrade reflects CGA's lower liquidity headroom after its
operating results were weaker than Fitch expected. The revenue and
profitability recovery was not as robust as Fitch had anticipated,
and further cash burn in 1H23 has made the execution of refinancing
plans critical for its upcoming capital-market debt maturities due
in 1Q24.
The company requires a successful operational turnaround to
deleverage meaningfully even if the refinancing is completed. This
has inherent execution risk and relies on market dynamics becoming
more favourable. Fitch believes there is uncertainty in timing,
given the weak performance of some mass-market joint venture (JV)
brands and a structural decline in demand for traditional internal
combustion engine vehicles in China.
[*] CHINA: Members of Bankrupt Gym Get Refunds Using E-Yuan
-----------------------------------------------------------
Yicai Global reports that China's e-yuan is showing its edge as
members of a gym chain in Qingdao recently managed to get refunds
when the business wound up.
Prepaid subscriptions were returned in digital yuan to members of a
large gym chain in Shandong province after local outlets were
suspended late last month due to a broken capital chain, Yicai
learned. E-yuan is a digital currency developed by the People's
Bank of China, the central bank.
One customer of the gym whose surname is Wang said to Yicai that he
recovered all the unused prepayments on July 5, less than a week
after troubles became evident at the gym.
"This experience really surprised me," Yicai quotes Wang as saying.
"It is because I had a similar experience with another merchant
that also went bankrupt after I bought a membership so I know it
would be quite difficult to refund the prepayments in these types
of circumstances."
According to Yicai, Wang had paid the gym subscription through
Zhijin Weishi, a service platform which manages e-yuan payments.
Zhijin Weishi belongs to a commercial bank in which Wang has an
account.
In fact, under this arrangement, prepaid funds are accessible to
only the account owner before the actual consumption so service
platforms that supervise e-yuan payments can ensure that the
security of funds will not be impacted by the merchant's financial
status, said an official at the central bank's digital currency
institute that developed an underlying system for platforms such as
Zhijin Weishi. The increased transparency and tamper-proof
capabilities should also add trust between consumers and merchants,
the official added.
Yicai relates that the application of the PBOC's e-yuan system
along with Zhijin Weishi can ensure the safety of prepayments so
consumers no longer need to worry about their unused funds being
misappropriated by the merchant or third parties, said Zhu Feng,
deputy general manager of the digital yuan division at the Postal
Savings Bank of China.
At the same time, the system also provides regulators with a sound
technology tool to monitor the flow of funds, Zhu added.
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I N D I A
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ANAND RICE: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Anand Rice
Mills (ARM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 44.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 14, 2023,
placed the rating(s) of ARM under the 'issuer non-cooperating'
category as ARM had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. ARM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 29, 2024, May 9, 2024, May 19, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
ARM is engaged in the business of milling and processing of basmati
rice) at Nissing (Karnal, Haryana). The firm is also engaged in
procurement of semi-processed rice from the market which is further
processed through color sorter and grading
machines to remove the impurities.
ARCOTECH LIMITED: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Arcotech
Limited (Arcotech) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 266.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 205.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 04, 2023,
placed the rating(s) of AL under the 'issuer non-cooperating'
category as AL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 19, 2024, March 29, 2024, April 8, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Arcotech (ISIN Number: INE574I01035) was incorporated as Shri
Krishna Strips Ltd in 1984 and started its operations with a unit
at New Delhi to manufacture cold rolled copper/brass strips & foils
with a capacity of 1,666 MT. In 2006, the company relocated its
unit to Bawal, Haryana and its shares were listed on the Bombay
Stock Exchange Ltd (NSE & BSE) with effect from December 28, 2007.
The company undertakes manufacturing of brass & copper foils,
strips and sheets including radiator brass foils and radiator
copper foils with a capacity of 24,000 MTPA as on March 31, 2017 at
its facility in Bawal (Haryana).
B. J. GRAIN: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of B. J.
Grain (BJG) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated June 29, 2023,
placed the rating(s) of BJG under the 'issuer non-cooperating'
category as BJG had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BJG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 14, 2024, May 24, 2024, June 3, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in October 2015, as a proprietorship entity, B. J.
Grain (BJG) is engaged in trading of grains and pulses. The firm
started its commercial operations from February 2016.
BALDOVINO: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Baldovino
continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 4 CRISIL D (Issuer Not
Credit Cooperating)
Foreign Discounting 6 CRISIL D (Issuer Not
Bill Purchase Cooperating)
CRISIL Ratings has been consistently following up with Baldovino
for obtaining information through letter and email dated June 11,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Baldovino, which restricts
CRISIL Ratings' ability to take a forward looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on Baldovino is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of Baldovino continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
M/S Baldovino was set up in 2010 as a proprietorship concern by Mr.
Rikin Shah. The firm is also engaged in cutting and polishing of
diamonds.
BIYANI SHIKSHAN: CRISIL Moves D Debt Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of BSS to
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 4 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Working Capital 7.52 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with BSS for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BSS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BSS
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of BSS to 'CRISIL D Issuer not cooperating'.
Set up in 1997 by Mr Rajeev Biyani, Dr Sanjay Biyani and Dr Manish
Biyani, BSS was initially a coaching institute. The society set up
its first institute, Biyani Girls College, in Jaipur, Rajasthan, in
2003. It currently operates six institutes under the brand Biyani
in Vidhyadhar Nagar and Kalwar, Jaipur. The institutes offer
courses in the fields of commerce, nursing, education, technology,
information technology and management. BSS has more than 4,300
students.
BRIJ ENGINEERING: CARE Keeps C/A4 Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Brij
Engineering Works-Kanpur (BEW) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 7.00 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated July 5, 2023,
placed the rating(s) of BEW under the 'issuer non-cooperating'
category as BEW had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. BEW continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 20, 2024, May 30, 2024, June 9, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kanpur (Uttar Pradesh) based Brij Engineering Work (BEW) was formed
as partnership concern by Mr. Brij Kishore Gupta, Mar. Swapnil
Gupta, Mrs. Sheela Gupta and Mrs. Shweta Gupta in September 01,
1978. The firm is engaged in the construction of
overhead tank, sewage pipelines and sewage treatment plants,
installation and commissioning of water supply lines. The firm
takes the contracts from government departments through
participating in tenders.
CREATIVE CLOTHEX: CARE Keeps C Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Creative
Clothex (CC) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.10 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated June 13, 2023,
placed the rating(s) of CC under the 'issuer non-cooperating'
category as CC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. CC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 28, 2024, May 8, 2024, May 18, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Noida, Uttar Pradesh based, Creative Clothex (CC) was originally
established in 1995 as a proprietorship concern and is currently
being managed by Mrs. Geeta Singhal. The firm is engaged in
manufacturing of readymade garments such as sportswear and casual
wear (shorts, jackets, track suits, track pants, t-shirts etc.) for
men and women.
DEESAN COTEX: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Deesan
Cotex Private Limited (DCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated June 1, 2023,
placed the rating(s) of DCPL under the 'issuer non-cooperating'
category as DCPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. DCPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 16, 2024, April 26, 2024, May 6, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2007, Deesan Cotex Private Limited (DCPL) is
engaged in manufacturing and processing of terry towels, trading of
grey fabric and job work of yarn doubling. DCPL has its plants
located at Dhaiwad, Dhule, Maharashtra. DCPL is a part of the
Deesan group which has been in the business of textile
manufacturing since 1996.
FINAXAR TECHNOLOGY: Voluntary Liquidation Process Case Summary
--------------------------------------------------------------
Debtor: Finaxar Technology Solutions Private Limited
Level 1, First International Financial Center,
Plot No-C-54 and C-55, G bloc,
Bandra, Kurla Comp. Mumbai City,
Mumbai, Maharashtra, India, 400051
Liquidation Commencement Date: June 28, 2024
Court: National Company Law Tribunal Chandigarh Bench
Liquidator: Sarthank Ohri
11, Chander Vihar, Mugrala Road
Dinanagar, Gurdaspur,
Punjab, 143531
Email: sarthak.ca@yahoo.com
Email: finaxartech.liquidation@gmail.com
Last date for
submission of claims: July 28, 2024
GEETA TEXTILE: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree Geeta
Textile Mills Private Limited (SGTMPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 43.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 09, 2023,
placed the rating(s) of SGTMPL under the 'issuer non-cooperating'
category as SGTMPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SGTMPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 24, 2024, April 3, 2024, April 13, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SGTMPL was established in 2008 by Madhya Pradesh based Mittal
family. SGTMPL has completed its project in phase wise and started
commercial operations of cotton ginning & pressing and spinning
from November, 2015 and knitting of cotton yarn from
February 2016. The company manufactures 100% cotton yarn of 28
counts (average) which finds application in the manufacturing of
hosiery garments and bed sheets. The plant of the company has total
installed capacity 10 tons per day for manufacturing of cotton yarn
and 10 tons per day for knitting of cotton yarn.
GUJARAT INFRA: CRISIL Reaffirms B+ Rating on INR20.5cr Loan
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Gujarat Infraproject Private
Limited (GIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 4.5 CRISIL B+/Stable (Reaffirmed)
Cash Credit 20.5 CRISIL B+/Stable (Reaffirmed)
The ratings reflect the modest scale of business and susceptibility
to tender-based and working capital-intensive operations. These
weaknesses are partially offset by the extensive experience of the
promoters and healthy capital structure.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and susceptibility to tender-based
business: Despite improving, revenue remains muted due to intense
competition in the civil construction industry. This will continue
to limit operating flexibility. Operating income remains modest,
estimated at INR~28.8 crore for fiscal 2024 (INR14.84 crore in
fiscal 2023). However, the company has been able to procure healthy
order book with total unexecuted orders of INR~180 crore as of June
2024, which provides healthy revenue visibility. Although, timely
execution of these orders and ramp up in scale of operations will
remain a key monitorable. Also, given the cyclicality inherent in
the construction industry, maintaining profitability through
operating efficiency becomes critical.
* Large working capital requirement: Gross current assets continue
to be sizeable, estimated at ~235 days as on March 31, 2024 (236
days a fiscal earlier). This is because the company mostly executes
projects for state government departments, which delay payment.
GIPL also must stock funds in margin deposits and loans and
advances given to group companies. Supplier credit partially
supports working capital. Improvement in working capital management
will be closely monitored.
Strengths:
* Extensive experience of the promoters: Presence of more than a
decade in the civil construction industry has enabled the promoters
to develop a strong understanding of market dynamics and establish
healthy relationships with suppliers and customers. As a result,
the company has been able to procure moderate orders. The total
outstanding orders stood around INR~180 crore as of June 2024.
* Healthy capital structure: Lower reliance on external funds led
to strong gearing and total outside liabilities to adjusted
networth ratios estimated at 0.7 time and 1.4 times, respectively,
as on March 31, 2024 (0.72 and 0.80 time, respectively, a year
earlier). These metrics are expected at 0.8-1.0 time and 1.50-1.75
times over the medium term. Networth is estimated to improve to
around INR23.5 crore as on March 31, 2024 and is expected at
INR24-27 crore over the medium term.
Liquidity: Stretched
Bank limit utilisation is moderate at 82.3% for the 12 months ended
April 2024. Cash accrual is estimated at INR~0.07 crore in fiscal
2024 and is expected to be INR2-3 crore over the medium term, which
are sufficient against term debt obligation of around INR0.12 crore
per annum. In addition, it will act as cushion to the liquidity of
the company. Current ratio is estimated at a low 0.82 time as on
March 31, 2024. Extensive exposure to group companies - investment
of INR14.52 crore in group companies in the form of equity, loans
and advances as on March 31, 2024, which is ~61% of its current
networth. CRISIL Ratings believes that any further exposure in the
group companies, impinging its own cash accrual may impact
liquidity and will remain a rating sensitivity factor.
Outlook: Stable
The company will continue to benefit from the extensive experience
of its promoters and established relationships with clients.
Rating Sensitivity Factors
Upward Factors
* Sustained improvement in revenue and operating margin leading to
cash accrual of more than INR1.50 crore
* Better debt protection metrics
Downward Factors
* Decline in revenue by more than 25% or fall in profitability
resulting in lower-than-expected net cash accrual
* Further stretch in the working capital cycle or large,
debt-funded capital expenditure adversely affecting liquidity.
GIPL was incorporated in 2010 and is promoted by Mr Ashokkumar
Patel, Mr Tribhovandas, Mr Pravinkumar Patel Tribhovandas, Mr
Vikram Tribhovandas Patel, Mr Mukeshkumar Tribhovandas Patel, and
Mr Kalpeshkumar Dahyabhai Patel. Based in Visnagar, Gujarat, the
company constructs roads and bridges.
HI TECH AIR: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Hi Tech Air Power Private Limited
No. 6, Gandhi Bazar Main Road
Basavanagudi, Bengaluru
Insolvency Commencement Date: June 3, 2024
Estimated date of closure of
insolvency resolution process: November 30, 2024
Court: National Company Law Tribunal Bengaluru Bench
Liquidator : TVS SIVA Prasad
Flat No. C-339, Mahaveer Zephyr
Kodichikkanahalli, Bengaluru
Email: cirp.htap@gmail.com
Last date for
submission of claims: July 15, 2024
KALPANA NATURAL: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kalpana
Natural Forest Products Private Limited (KNFPL) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Issuer Not
Cooperating)
Term Loan 7.0 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KNFPL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KNFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KNFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KNFPL continues to be 'CRISIL D Issuer Not Cooperating'.
KNFPL was founded by the Korba (Chhattisgarh)-based Agrawal family,
and is a part of the Plam group. The company undertakes real estate
projects and trades in tendu leaves. It is developing a residential
real estate project, Palm Enclave, in Bilaspur (Chhattisgarh).
KALYANI CONSTRUCTION: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kalyani
Construction (KC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.35 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 24, 2023,
placed the rating(s) of KC under the 'issuer non-cooperating'
category as KC had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 8, 2024, April 18, 2024, April 28, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kalyani Construction was established on April, 2001 as a
proprietorship entity and it is being managed by Mr. Kajal Ghosh.
Since its incorporation, the entity has been engaged in development
of commercial and residential real estate projects. In past, the
entity has developed various real estate projects in Barrackpore,
Kolkata namely, Anima Apartment, Tanuka Apartment, Srish Apartment,
Anandadham, Kalyani Apartment, Khan Mansion, Upasana Apartment,
Baishakhi Apartment, Amrabati Apartment, Swadesh Kunj, Addama
Bhavan. The promoter (Mr. Kajal Ghosh) has satisfactory business
experience of around 19 years in real estate industry.
KAMAKSHI STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kamakshi
Steels Private Limited (KSPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KSPL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KSPL continues to be 'CRISIL D Issuer Not Cooperating'.
KSPL was set up in 2003 by Mr P Krishna Reddy. The company
manufactures mild steel billets and ingots, and TMT bars. It is
based in Vijayawada.
MAHESVARA CASHEW: CARE Keeps C Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahesvara
Cashew Industries (MCI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.08 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 30, 2023,
placed the rating(s) of MCI under the 'issuer non-cooperating'
category as MCI had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MCI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 14, 2024, April 24, 2024, May 4, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mahesvara Cashew Industries (MCI) was established in the year 2010
and promoted by Mr. Gopinath Bhat, Mr. Udaya Shetty, Mr.
Chiranjitha Ajila, Mrs. Arundathi Ajila, and Mrs. Namitha Shetty.
The firm is engaged in processing of raw cashew nuts. The firm
sells the processed cashew nuts in Karnataka, Gujarat and Mumbai.
The firm procures raw cashew nuts from international market places
like South Africa and Tanzania. Currently, the day to day
operations of the firm are managed by the Mr. Gopinath Bhat
(Managing Partner).
MOUNTAIN EDGE: Liquidation Process Case Summary
-----------------------------------------------
Debtor: Mountain Edge Tours and Holidays Private Limited
Registered Office:
Opposite Rajasthan Manch Shadipur,
Andaman Islands Port Blair,
Andaman & Nicobar,
India 744106
Other Address:
Unit No. B-125, Eastern Business District,
Neptune Living Point,
LBS Road, Bhandup West,
Mumbai - 400078
Liquidation Commencement Date: June 25, 2024
Court: National Company Law Tribunal Kolkata Bench
Liquidator: Brinda Bidasaria
Siddha Weston, 9 Weston Street,
Unit 107, 1st Floor Kolkata-700013
Email: cabrindadalmia@gmail.com
Email: mountainedge.cirp@gmail.com
Last date for
submission of claims: July 25, 2024
MUTYAM STEEL: CRISIL Upgrades Rating on INR25cr Debt to B+
----------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Mutyam Steel Private Limited (MSPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Channel Financing 5.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Channel Financing 10 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Channel Financing 25 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Channel Financing 22 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Long Term Loan 2.19 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade factors in improved business performance of the
company with increasing scale of operations and profitability.
However, the rating reflects the average financial risk profile and
stretched liquidity of the company. These weaknesses are partially
offset by the extensive experience of the promoter in the
construction material trading business and stable business
performance.
Key Rating Drivers & Detailed Description
Weaknesses:
* Average financial risk profile: The financial risk profile is
constrained by total outside liabilities to adjusted networth ratio
of 4.78 times as on March 31, 2024. Debt protection metrics were
modest owing to high reliance on working capital borrowing and
subdued profitability, as reflected in interest coverage and net
cash accrual to total debt ratios of 1.54 times and 0.05 time,
respectively, in fiscal 2024. The debt protection metrics are
expected at similar levels over the medium term.
* Low operating margin owing to trading business: Intense
competition and low value addition in the trading business may
continue to constrain scalability, pricing power and profitability.
Operating margin was restricted to 1.9-2.3% over the three fiscals
through 2024 and is expected to remain subdued over the medium
term.
Strengths:
* Extensive experience of the promoter: The promoter, Mr Mahendar
Reddy, has experience of over two decades in the construction
material (cement and thermo-mechanically treated [TMT] bars)
trading business. His experience has enabled MSPL to establish
healthy relationships with customers.
* Improved business performance: Revenue rose to INR460 crore in
fiscal 2024 from INR400 crore in fiscal 2023. Driven by improved
sales and higher volume discounts, the operating margin increased
to 2.3% from 2%. Revenue is expected at a similar level over the
medium term.
Liquidity: Stretched
Bank limit was fully utilised for the 12 months through May 2024.
Cash accrual, expected over INR2.5 crore per annum, will
sufficiently cover yearly term debt obligation of less than INR1.5
crore over the medium term. Current ratio was moderate at 1.2 times
as on March 31, 2024. The promoter will likely provide funding
support in case of contingencies.
Outlook: Stable
CRISIL Ratings believes MSPL will continue to benefit from its
longstanding relationships with principal suppliers and experience
of the management to mitigate the inherent risk in trading
business.
Rating Sensitivity Factors
Upward factors
* Improvement in the financial risk profile and liquidity, with
bank limit utilisation less than 95%
* Sustenance of healthy business performance
Downward factors
* Stretched working capital cycle weakening the liquidity
* Moderation in business performance with net cash accrual less
than INR1 crore
Incorporated in 2008, MSPL is promoted by Mr Mahender Reddy. The
company is an exclusive distributor for Tata Steel Ltd for
structural steel products in Andhra Pradesh and Telangana.
NAMITA RICE: CARE Lowers Rating on INR6.75cr LT Loan to C
---------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Namita Rice Mill Private Limited (NRMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.75 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Short Term Bank 0.19 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated May 16, 2023,
placed the rating(s) of NRMPL under the 'issuer non-cooperating'
category as NRMPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NRMPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2024, April 10, 2024, April 20, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of NRMPL have been
revised on account of non-availability of requisite information.
Namita Rice Mill Private Limited (NRMPL) was incorporated on May 2,
2011 in the name of 'Sree Jaganath Enterprises Private Limited'.
However, later on September 26, 2017 the name of the company has
changed to its current name i.e. 'Namita Rice Mill Private
Limited'. It is a Nadia; West Bengal based company promoted by Mr.
Sujit Kumar Ghosh and Mrs. Chameli Ghosh to initiate business of
milling and processing of rice.
PHOTON ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Photon Energy
Systems Limited (PESL; part of Photon group) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL D (Issuer Not
Cooperating)
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 15 CRISIL D (Issuer Not
Cooperating)
Proposed Working 32.8 CRISIL D (Issuer Not
Capital Facility Cooperating)
Rupee Term Loan 1.2 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PESL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PESL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PESL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PESL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at its ratings, CRISIL Ratings has combined the
business and financial risk profiles of PESL and Photon Solar Power
Pvt Ltd (PSPPL). Both entities, together referred to as the Photon
group, have common management, operational synergies as they are in
similar businesses, and also have significant financial linkages.
Photon Group was set up by Mr N Purushottam Reddy and his family
members in 1995. The group manufactures and assembles solar energy
systems and has solar power plants. Manufacturing facility of the
group is located in Hyderabad.
PVSRSN ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of PVSRSN
Enterprise Private Limited (PVSRSN) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PVSRSN for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PVSRSN, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
PVSRSN is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of PVSRSN continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
PVSRSN was set up as a proprietorship firm in 2003 by Mr. P V Sita
Rama Swamy Naidu. The firm was reconstituted as a closely held
company in 2008. PVSRSN undertakes civil construction activities
entailing irrigation and roadwork, and has implemented projects in
Andhra Pradesh.
R R TRENDS: CRISIL Lowers Rating on INR23cr Cash Loan to B+
-----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank
facilities of R R Trends Pvt Ltd (RRTPL) to 'CRISIL B+/Stable' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 23 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Term Loan 7 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade in the rating reflects lower than expected business
risk profile, on account of lower than anticipated operating income
of the company at INR50 crore in fiscal 2024 against CRISIL's
expectation of INR73-75 crore, amidst reduced demand due to the
economic slowdown in the USA and Europe. Resultantly, the operating
profitability fell from 5.8% to 2.6% in fiscal 2024, on account of
incremental freight cost being borne by the company. Parallelly,
the net cash accruals were impacted too.
The ratings reflect modest scale of operations and leveraged
capital structure. These weaknesses are partially offset by the
extensive experience of the promoters in the readymade garment
industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Due to the economic slowdown in the
USA and Europe, impacting the export market, the company clocked in
sales of INR50 crores in fiscal 2024, a degrowth of 40% as compared
to INR70 crores in 2023. The majority of the revenue comes from the
export market, which exposes the company to changes in trade
policies and fluctuations in foreign exchange rates. The company
also met with a fire incident during the peak season, leading to
inventory loss of INR2-2.5 crores, resulting in a decline in
operating profitability from 5.8% to 2.6% in fiscal 2024. Going
ahead, the company is planning to do a capex to enhance its
production capacity, to meet customer demand, which will support
the company in increasing its operations along with better
operating profitability. Timely installation of capital
expenditure, without any cost over runs in the business, leading to
the improvement in the scale of operations will remain
monitorable.
* Average financial risk profile: The financial risk profile of the
company has deteriorated in fiscal 2024, owing to the degrowth in
operating income, which can be seen through modest net worth of
INR9.05 crore. Increased dependence on external debt has resulted
in leveraged capital structure with TOL/ ANW estimated at 4.09
times as of Mar 31, 2024. This, along with debt funded capital
expenditure plans of the management towards increasing the
production capacity will keep the leverage high, with expected TOL/
ANW ratio of around 3.5-4 times over the medium term. Going
forward, prudent working capital management and accretion to
reserves, leading to improved capital structure and financial risk
profile will remain key monitorable.
Strength:
* Extensive experience of promoters: The two-decade long experience
of the promoters in the readymade garments industry, their
understanding of market dynamics and healthy relationships with
customers and suppliers should continue to support the business.
RRTPL has maintained longstanding relationships with customers in
USA and Europe. CRISIL believes, addition of new customers and
regular orders from existing customers shall strengthen the overall
revenue profile of the company and shall remain a key monitorable.
Liquidity: Poor
Expected cash accrual of INR1-1.5 crore, over the medium term, will
be insufficient to cover debt obligation of INR1.5-2 crore.
However, liquidity is supported by bank limits which remain
utilized at 70.67% for the last 12 months. The current ratio was
healthy at 1.06 times as on March 31, 2024.
Outlook: Stable
CRISIL Ratings believes RRTPL will continue to benefit from the
extensive experience of its promoters and healthy relations with
clients.
Rating Sensitivity Factors
Upward factors
* Sustained improvement in revenue, resulting in stable operating
margin at 4.0-4.5%, leading to higher net cash accruals.
* Prudent working capital management, leading to lower dependence
on external debt.
Downward factors
* Decline in revenue and operating margin to below 2%, resulting in
lower-than-expected net cash accrual.
* Sizable stretch in working capital cycle, weakening liquidity and
the financial risk profile.
Incorporated in 2004, Noida-based RRTPL manufactures readymade
garments for women and exports to the European and American
markets. Mr Rajesh Katyal and Mr Rakesh Katyal are the promoters.
RA FASHIONS: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of RA Fashions
Private Limited (RAFPL; part of the Ashro group) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.50 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.91 CRISIL D (Issuer Not
Cooperating)
Working Capital 2.59 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with RAFPL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RAFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RAFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RAFPL continues to be 'CRISIL D Issuer Not Cooperating'.
CRISIL Ratings has combined the business and financial risk
profiles of RA Fashions Pvt Ltd (RAFPL) and ATPL. This is because
the companies, collectively referred to as the Ashro group, have
common management and are in the same line of business, leading to
operational and financial linkages.
About the Group
ATPL and RAFPL were incorporated in 2011 by Mr Ravinder Agarwal.
The group manufactures readymade garments for men and women. The
weaving unit is in Wada (Thane) and the stitching unit in
Bengaluru.
REDDY VEERANNA: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Reddy
Veeranna Constructions Private Limited (RVCPL) continue to be
'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 25 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RVCPL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RVCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RVCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RVCPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
RVCPL was set up as a proprietorship firm, Reddy Veeranna & Co in
1980; the firm was reconstituted as a private limited company with
the current name in 2002. It is based in Bengaluru and promoted by
Mr. Reddy Veeranna The company undertakes civil construction works
such as construction of roads, bridges, BOT (build, operate,
transfer) projects, irrigation works, and office buildings, for
government entities and private players in various south India
states.
REHBER FOOD: CARE Lowers Rating on INR56cr LT Loan to D
-------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Rehber Food Industries Private Limited (RFIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term 56.00 CARE D; ISSUER NOT COOPERATING;
Bank Facilities Revised from CARE B-; Stable
and moved to ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from RFIPL to
monitor the rating vide e-mail communications/letters dated May 13,
2024; July 11, 2024; among others and numerous phone calls.
However, despite repeated requests, the company has not provided
the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating. The rating on Rehber Food Industries
Private Limited's bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of Rehber Food
Industries Private Limited (hereinafter referred to as RFIPL) have
been revised on account of the recent delays in debt servicing
obligations of the company owing to closure of plant since May
2024. However, the reasons could not be ascertained due company's
non-cooperative status.
The rating, constrained by weak operational performance marked by
inherently low profitability in meat processing business, disrupted
operations over the last 3 fiscals owing to lower than agreed
offtake by Rustam Group and series of legal issues which led to
closure of factory operations during December 2022 to Feb 2023,
stretched liquidity due to lower collection efficiency, the risks
emanating from disease outbreak from time to time, foreign exchange
fluctuation risk and regulatory risk. The rating, however, derive
strength from experienced promoters coupled with long track record
of operations, favourable geographical location of facilities and
moderate capital structure.
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers: At the time of last
rating on July 14, 2023 the following were the rating strengths and
weaknesses (updated for the information available from Registrar of
Companies).
Key weaknesses
* Delay in debt servicing: As per the lender's feedback received,
there were instances of delay in repayment of debt obligation by
the company during the month of May 2024 and June 2024 primarily on
account of closure of plant for past two months adversely impacting
the revenues and liquidity.
* Weak operational performance with thin profitability leading to
default in last fiscal: The company's scale of operations remained
fluctuating with inherently low profitability in meat processing
business. Consequently, the company entered into agreement with
Rustam Group in FY19 with envisaged committed offtake for company's
products. However, with commencement of Rustom's slaughterhouse in
Bihar, the volumes nosedived significantly in last 2 fiscal years,
leading to liquidity crunch and eventual default in December 2022.
Further, in December 2022, first information report (FIR) was filed
among directors in personal capacity and income tax raid was also
carried out at the premises of the company in Bareilly. All these
developments led to closure of factory operations during December
2022 to Feb 2023. In Feb 2023, Rustom Group and company mutually
agreed to part ways with stake of Rustom Group (who held 40% stake
in the company) taken over by India Frozen Foods with effect from
April 1, 2023, leading to improvement in operational performance.
* Weak financial risk profile albeit moderate capital structure:
Owing to stretched liquidity position and decline in profitability,
coverage indicators showed a declining trend in last 5 yrs. PBILDT
interest coverage declined to 1.93x (PY:2.33x) and total debt to
GCA ratio deteriorated to 12.72x (PY:11.76x) in FY23. The capital
structure of the company, however, stood at a moderate level for
last 5 years owing to healthy net worth base as compared to total
debt. Overall gearing stood at 0.43x (PY: 0.44x) as on March 31,
2023. The debt profile of the company comprises of working capital
borrowings in form of cash credit limit of INR45.19 crores and term
loan to the tune of INR11.67 crores as on March 31, 2023.
* Foreign exchange fluctuation risk: The company's profitability
margins are exposed to volatility in foreign exchange as exports
accounts for ~20% of its operating income and with seizure of
offtake agreement with Rustam Group, exports are expected to
increase. With initial cash outlay for procurement in domestic
currency and part of sales realization in foreign currency, the
company is exposed to the fluctuation in exchange rates. However,
the risk is partially mitigated as the company is having long term
relations with the customers.
* Inherent business risk due to sensitive nature of business and
highly competitive nature of industry: Indian meat processing
industry is highly competitive resulting into pressure on the
profitability margins of the companies. There are number of
abattoirs-cum-meat processing plant registered with Agricultural
and Processed Food Products Export Development Authority (APEDA).
Further, the import of meat products in many of the countries is
subject to regulatory approvals, which are subject to adverse
effects from change in trade policies of the importing countries.
The regular quality checks are undertaken and done as per the
regulatory guidelines of the respective countries. Also, the
approval given by the Indian government for the operations of a
slaughterhouse is to be renewed every year. Moreover, change in the
government fiscal policy with respect to duty free import for
export sector or change in the subsidized interest rates will
hamper the performance of the company and affect its profitability
margins. Furthermore, the meat processing industry is also exposed
to risks of disease out-break which impacts the demand.
Key strengths
* Experienced promoters coupled with long track record of
operations: RFIPL is promoted by Mr. Firoz Ahmed Shaikh and MR.
Nisar Moosa who have more than three decades of experience in the
buffalo meat processing industry through various family-owned
companies They are well supported by experienced professionals
managing day-to-day operations of the company. The company has been
in this business since 2007, which has resulted in long established
relationships with both suppliers and customers. Furthermore, stake
of Rustom Group (who held 40% stake in the company) has been taken
over by India Frozen Foods with effect from April 1, 2023. India
Frozen Foods operates as an integrated cold chain and preservation
facility and is engaged in the processing and supplying of frozen
buffalo meat. Unlike committed offtake agreement and restriction on
business with Rustom Group, the company do not have such
restrictions with India Frozen Foods.
* Favourable geographical location of facilities: The company is
engaged in the processing of buffalo meat and its processing
facility is located in Bareilly (UP) which is the largest meat
processing hub in India, which provides an easy access to raw
material and skilled labour.
Incorporated in 2007, Rehber Food Industries Private Limited
(RFIPL) processes and sells buffalo meat in the domestic (~80%) as
well as export markets. Initially incorporated as Marya Frozen Agro
Foods Private Limited, the company was renamed as Rehber Food
Industries Private Limited (RFIPL) in FY2018. It is owned and
managed by Mr. Firoz Ahmed Shaikh and Mr. Nisar Moosa, who have
extensive experience in the meat-processing business. Further,
India Frozen Foods, an established player in the export of buffalo
meat, acquired a 40% stake in RFIPL w.e.f. April 01, 2023. RFIPL's
integrated meat-processing plant, comprising a slaughterhouse, is
located at Bareilly, Uttar Pradesh. The facility has a processing
capacity of 190 metric kilo gram per day, a freezing plant to store
raw and finished meat, and a rendering plant to process offals.
RUBYKON MANUFACTURING: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rubykon
Manufacturing Company (RMC) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (Issuer Not
Cooperating)
Foreign Letter 5.7 CRISIL D (Issuer Not
of Credit Cooperating)
Letter of Credit 0.1 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 6.7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RMC for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RMC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RMC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RMC continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 2011 as a partnership firm by Mr. Ashok Mehta and
his wife Mrs. Bharti Mehta, RMC is engaged in manufacturing of 3
ply and 5 ply corrugated boxes and cardboard cartons widely ranging
in thickness, shapes and sizes. The firm has manufacturing plant
set up at Kala Amb, Himachal Pradesh.
SAEL RG1: Fitch Assigns 'BB+(EXP)' Rating on New USD Secured Notes
------------------------------------------------------------------
Fitch Ratings has assigned SAEL Restricted Group's (SAEL RG1)
proposed US dollar senior secured notes due 2031 an expected rating
of 'BB+(EXP)'. The Outlook is Stable. SAEL RG1 is a restricted
group (RG) of solar and waste-to-energy (WTE) projects owned by
India-based SAEL Limited.
The final rating is contingent upon the receipt of final bond
documents conforming to information already received.
RATING RATIONALE
SAEL RG1 includes six co-issuers - SAEL Ltd, Sunfree Paschim
Renewable Energy Ltd, SAEL Solar Solutions Pvt Ltd, Jasrasar Green
Power Energy Pvt Ltd, SAEL Kaithal Renewable Energy Pvt Ltd and
Universal Biomass Energy Private Ltd.
The expected rating is supported by limited volume and price risk
as well as low fuel-supply risk for the WTE projects. It also
benefits from the higher load factors and tariffs associated with
the WTE projects. The RG will repay about 46% of the total bond
value during the proposed bond's tenor, with repayments primarily
structured through mandatory cash sweeps (MCS). The debt structure
accumulates all excess cash generated during the bond's tenor for
the benefit of the bondholders.
The rating case debt-service coverage ratio (DSCR) of 1.76x is
stronger than that commensurate with a 'BB+(EXP)' rating. However,
the credit assessment is constrained by systemic risk to the power
sector in India, manageable refinancing risk from the balloon
structure of the notes, and the RG's heavy reliance on MCS
repayments. Refinancing risk will increase if MCS do not
materialise.
KEY RATING DRIVERS
Proven Technology, Affiliated Contractor - Operation Risk:
'Midrange'
SAEL RG1's total rated capacity of 334MW comprises solar power
projects (72%, 244MW) and WTE power assets (28%, 90MW) with a
capacity-weighted average operating history of 3.8 years. The
technologies deployed are considered proven. Solar modules are
mostly sourced from well-known suppliers. WTE assets are equipped
by Thyssenkrupp AG, Burmeister & Wain Scandinavian Contractor, and
Siemens.
Operation and maintenance (O&M) is carried out by an affiliate
company, SAEL Engineering Private Limited, under fixed-price
contracts with minor annual escalation. Major maintenance reserve
accounts for WTE projects and inverter replacement reserve accounts
are funded separately. Its assessment is constrained to 'Midrange'
as the operating cost forecast has not been validated by an
independent technical advisor.
Higher WTE Proportion, Tighter Solar Spread Forecast - Volume Risk:
'Midrange'
A marginally higher proportion of energy within the RG is generated
from WTE, due to the higher load factors. The RG's WTE projects,
unlike thermal projects, lack take-or-pay arrangements but face
limited curtailment risk due to their implied "must-run" status and
base load operation. They also support the renewable-power purchase
obligations of distribution companies (discoms) and help contain
pollution. Projects commissioned in the financial year ended March
2020 (FY20) or later took three years to achieve peak performance,
but Fitch expects newer projects to do so more quickly.
A third-party expert's energy yield forecast for the solar
portfolio indicates an overall one-year P90/P50 spread of about 6%,
which Fitch assesses as 'Stronger'. However, this assessment is
constrained by the limited record of most of the solar assets in
the portfolio, including a 50MW project commissioned in June 2024.
Fitch expects limited curtailment risk for the solar and WTE
assets, given their must-run legal status.
Fixed Long-Term Prices for Most Contracts - Price Risk: 'Midrange'
Tariffs for all solar projects, except one 50MW project, are fixed
under 25-year power purchase agreements (PPAs). The tariff for this
50MW project is fixed until March 2030, after which it will be
based on the average power-purchase cost of its counterparty. The
capacity-weighted average remaining PPA life for the solar
portfolio is about 19 years.
WTE project tariffs have two components, a fixed component based on
a project's fixed costs and a variable component accounting for
fuel costs. PPA tenors for all WTE projects are 20 years or more,
but tariffs are fixed for a shorter duration of 13 years for three
of the projects and are variable for one project, periodically
determined by the state discom. Over the fixed 13-year tariff
period, the variable component will increase at a rate of 5% per
annum irrespective of the actual increase in the underlying fuel
cost.
Reasonable Supply, Lumpy Procurement - Supply Risk: 'Midrange'
Five assets are located in paddy-rich states of India where most of
the paddy straw is burnt in the fields. One asset in Rajasthan can
also use a mix of mustard and ground nut husks as fuel. The RG's
supply is unaffected by variability in crop yields, as paddy straw
remains readily available even if the crop cycle is poor.
Fuel for the entire year has to be procured during the harvesting
period of two-to-three months. All projects have the capacity to
stock one-to-two months of fuel, while the remaining stock is
stored at collection centres near the projects. The supply
contracts offer fixed prices with some annual escalation. There are
no delivery liquidated damages in the supply contracts or reserves
to cover PPA deductions or operating costs. Its overall assessment
is constrained to 'Midrange'.
Cash Sweeps Heavy Repayments, No Restricted Payments - Debt
Structure: 'Midrange'
SAEL Ltd and its five other operating subsidiaries are the
co-issuers of the seven-year US dollar notes, providing cross
guarantees to each other. The bond proceeds will primarily
refinance the RG's existing debt and extend inter-company loan
outside the RG. In its rating case, notes are expected to be repaid
primarily through mandatory cash sweeps (40.9%), with an additional
small portion through scheduled amortisation (5.5%).
Bondholders will benefit from a complete lockup of cash (no
restricted payments) and restrictions on permitted indebtedness,
excluding USD20 million of working capital debt. The RG will also
maintain a six-month debt service reserve account. Refinancing risk
is mitigated by partial repayment during the proposed bond's tenor
and the remaining tenor of the PPAs. The issuer plans to hedge
foreign-exchange risk for the tenor of the notes by paying a full
hedging premium upfront.
Financial Profile
Fitch's base case assumes P50 generation, a 5% production haircut
and 0.5% annual degradation for solar assets. For WTE projects,
Fitch assumes 1.1 tonnes/MWh fuel efficiency and a load factor as
per third-party consultant. Newly commissioned and upgraded assets
are to stabilise in the second year. Its O&M and fuel supply cost
forecasts are in line with those of the company.
Its rating case assumes one-year P90 generation, a 5% production
haircut and 0.6% annual degradation for solar assets. For WTE
projects, we assume 1.2 tonnes/MWh fuel efficiency and a load
factor 5% lower than the base case. Newly commissioned and upgraded
assets are to stabilise in the third year. A three-month delay is
assumed in the commissioning of one WTE project that is under
construction. Its O&M costs are 10% higher for the solar assets and
20% higher for the WTE projects. Fitch assumes 5% annual escalation
for fuel costs.
Both cases assume contracted tariffs for projects with long-term
PPAs. For solar project Unit 7, Fitch assumes a 50% tariff haircut
once the tariff tenor expires. For three WTE projects, Fitch
assumes a flat tariff once the 13-year tariff periods expire. Fitch
assumes that the outstanding US dollar bond will be refinanced at
12%, with accumulated cash reducing the refinance debt amount. The
assumptions generate an average DSCR of 2.08x under the Fitch base
case and 1.76x under the Fitch rating case during the refinancing
period.
PEER GROUP
SAEL RG1 is comparable with Continuum Green Energy (India) Private
Limited (Continuum RG2, note rating: BB+/Stable). SAEL RG1's 334MW
portfolio of solar and WTE assets primarily serves state discoms.
In contrast, Continuum RG2's 990.8MW portfolio of wind and solar
projects has a diversified pool of commercial and industrial
clients that generally have shorter payment cycles. Both SAEL RG1
and Continuum RG2 rely heavily on MCS repayments and have balloon
structure bonds. However, SAEL RG1's debt structure traps all
excess cash and pays full hedging costs for the bond upfront.
SAEL RG1 can also be compared with Adani Green Energy Limited
Restricted Group 1 (AGEL RG1, senior secured notes rating
BBB-/Stable) and Adani Green Energy Limited Restricted Group 2
(AGEL RG2, senior secured notes rating BBB-/Stable). AGEL RG1 and
AGEL RG2 are both pure solar portfolios with counterparties
comprising state discoms and sovereign-backed off-takers. All three
RGs have ringfenced issuing structures with direct issuance by the
operating entities. However, SAEL RG1 is exposed to refinancing
risk, which is absent for AGEL RG1 and RG2 due to their largely
amortising debt structures without any reliance on MCS repayments.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Average annual rating case DSCR persistently below 1.60x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Fitch does not expect a rating upgrade in the medium term due to
the uncertainty around the terms and conditions of future debt
refinancing, including the MCS payments and the accumulated cash at
maturity.
TRANSACTION SUMMARY
The RG includes SAEL Ltd and five other project SPVs, which will
all be co-issuers with cross-guarantees to each other. Five solar
projects, three WTE projects and the warehousing business
(generating about USD3 million-USD4 million of revenue with no
debt) are directly housed under SAEL Ltd. The group is currently in
the process of transferring the warehousing business out of the RG
after the US dollar note issuance, which may take time. The debt
structure will have enabling provisions for the transfer following
the bond issuance.
Proceeds of the proposed US dollar notes will be used by the
co-issuers to repay existing debt, including prepayment of
penalties to existing lenders, to extend inter-company loans to
group entities, and for other uses as permitted by the central
bank's guidelines for external commercial borrowings.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
SAEL RG1
SAEL RG1/Project
Revenues - Expected
Ratings/1 LT BB+(EXP) Expected Rating
SHYAM BEARINGS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Shyam
Bearings Private Limited (SSBPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 22 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSBPL for
obtaining information through letter and email dated June 11, 2024
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SSBPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSBPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSBPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SSBPL, based in Kolkata, was set up in 2005 to take over operations
of Shree Shyam Enterprises, established in 1995. The company is an
authorised distributor of bearings for principals NSK Ltd, Japan,
and MinsK Bearings Plant, Belarus. It is also an authorised dealer
for fire extinguishers of Siam Safety Premier Company Ltd,
Thailand.
SUPREME POLYTUBES: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Supreme
Polytubes Limited (SPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated June 12, 2023,
placed the rating(s) of SPL under the 'issuer non-cooperating'
category as SPL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 27, 2024, May 7, 2024, May 17, 2024.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The entity was initially incorporated as a private limited company
in 2002. However, the constitution was changed to a closely held
public limited company, in 2009. The company is currently being
managed by Mr. Sanjeev Kumar, Mr. Rajeev Kumar, Mrs. Shelly Goyal
and Mr. Sham Lal. The company is engaged in trading of PVC resin
and manufacturing of PVC pipes and tubes at its manufacturing
facility located in Dhuri, Punjab.
=========
J A P A N
=========
KOBAYASHI PHARMACEUTICAL: Oasis Buys 5% Stake in Drugmaker
----------------------------------------------------------
Nikkei Asia reports that Hong Kong-based activist investor Oasis
Management has built a 5.2% stake in troubled Japanese drugmaker
Kobayashi Pharmaceutical, according to securities filings submitted
July 24.
Oasis spent about JPY8.7 billion (US$56 million) through July 22 to
acquire more than 4 million shares, according to a disclosure to
the Local Finance Bureau, a regulator that includes Tokyo under its
jurisdiction.
In the filing, Oasis said the purpose of building the stake was for
portfolio investment and making proposals to Kobayashi Pharma,
Nikkei Asia relates. The Osaka-based drugmaker has been rocked by a
scandal surrounding a red yeast supplement suspected of being
linked to more than 80 deaths.
According to Nikkei Asia, Oasis is now the fourth-largest
shareholder in Kobayashi Pharma, based on financial statements made
for the fiscal year ended December 2023. The largest shareholder
was President Akihiro Kobayashi at 12.46%.
In its disclosure, Oasis said it may act on proposals to safeguard
shareholder value. With an eye toward boosting the share price,
activist investors tend to seek the appointment of independent
directors, as well as push for higher dividends and share buybacks,
Nikkei Asia says.
On July 23, Kobayashi Pharma announced the resignations of both
Chairman Kazumasa Kobayashi and President Akihiro Kobayashi. Both
are members of the founding family. Nikkei first reported the
impending departures on July 22.
Nikkei Asia relates that Kazumasa Kobayashi stepped down as
chairman and director on July 23 and assumed the post of special
advisor. The board is now composed of six members, including four
outside directors.
Headquartered in Japan, Kobayashi Pharmaceutical Co., Ltd.
manufactures and wholesales pharmaceuticals and medical equipment.
The Company also develops and manufactures fragrances, deodorant,
sanitary products, and ointment for stiff shoulders, as well as
exports to Southeast Asia and the US.
MT GOX: Creditors Get Crypto Repayments After Decade of Waiting
---------------------------------------------------------------
Bloomberg News reports that Mt Gox creditors are receiving a
portion of the roughly US$8 billion worth of cryptocurrency they
have been owed since a hack drove the Tokyo-based exchange into
bankruptcy a decade ago.
Kraken has distributed Bitcoin and Bitcoin Cash from the Mt Gox
estate, Bloomberg relates citing a post on the X social media
platform from the San Francisco-based exchange's chief executive. A
Kraken spokesperson confirmed the distribution and declined to
comment on the specific amount.
Bitstamp, another exchange that is working with the trustee Nobuaki
Kobayashi, said on July 24 that it is starting to return Bitcoin,
Bitcoin Cash and Ether tokens, according to Bloomberg. Recipients
will have full control of the assets within a week, the exchange
said without providing a specific amount.
Bloomberg says the long-anticipated distribution of the billions in
Bitcoin from what was once one of the largest crypto exchange has
weighed on the digital-asset market for weeks, raising concern that
creditors would look to unload the tokens and overwhelm demand. The
trustee notified creditors of the pending repayment while Germany
was selling Bitcoin that regulators had seized.
Mt Gox creditors are unlikely to sell a significant proportion of
the returned tokens, according to Raghuram Vadapally, a senior
fixed-income analyst at Carson Capital.
"There will be some selling, but not a crazy sale such as the
German government," Bloomberg quotes Mr. Vadapally as saying. "They
are not going to dump because they have all made huge profits."
Mt Gox distributed about US$336 million to four separate Bitstamp
digital wallet addresses, according to a post on July 24 on X by
the blockchain analysis firm Arkham Intelligence, Bloomberg relays.
The estate still has about US$6 billion in Bitcoin to distribute,
the firm estimated.
Not all of the estimated US$8 billion will be distributed this
year. Some creditors elected to wait to get the full amount owed
them, so they will get their coins later.
Bitcoin rose for the fifth time in six days, increasing about 1 per
cent to US$66,632. The largest cryptocurrency by market value is up
almost 60 per cent this year, Bloomberg notes.
About Mt. Gox
Tokyo-based MtGox Co., Ltd., operated a virtual currency
transaction system. Mt.Gox was the largest exchange for most of
Bitcoin's existence and was handling about 6 percent of all
Bitcoins in circulation.
In February 2014, MtGox Co., Ltd., announced in that it was filing
for bankruptcy after tens of millions of dollars worth of the
virtual currency and client funds disappeared.
In March 2014, MtGox sought bankruptcy protection in Japan. The
bankruptcy in Japan came after the bitcoin exchange lost 850,000
bitcoins valued at about $475 million "disappeared."
The Company filed a petition under Chapter 15 of the U.S.
Bankruptcy Code on March 9, 2014. It filed for bankruptcy
protection in the U.S. to prevent customers from targeting the cash
it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie Mark
Karpeles, the company's chief executive officer. Mr. Karpeles is
represented by John E. Mitchell, Esq., and David William Parham,
Esq., at Baker & Mcckenzie LLP, in Dallas, Texas.
The bankruptcy trustee and foreign representative of MtGox Co. Ltd.
with respect to the Japan Bankruptcy Proceedings:
MtGox Co., Ltd.
Office of Bankruptcy Trustee
Kojimachi 3 chome building #202
Kojimachi 3-4-1
Chiyoda-ku, Tokyo
Tel: +81-3-4588-3922
Attn: Nobuaki Kobayashi
The Ontario Superior Court of Justice (Commercial List) on Oct. 3,
2014, ordered, pursuant to Section 272 of the Bankruptcy and
Insolvency Act, that the bankruptcy proceedings commenced with
respect to MtGox Co., Ltd. -- aka Mt. Gox KK and dba MtGox -- be
recognized as a "foreign main proceeding."
The Canadian legal counsel to the bankruptcy trustee and foreign
representative of MtGox Co., Ltd, are Jeffrey Carhart and Margaret
Sims, at Miller Thomson LLP.
In November 2021, Mt. Gox bitcoin repayment plan got final approval
from trustee.
=====================
N E W Z E A L A N D
=====================
ATEYA BUILDERS: Creditors' Proofs of Debt Due on Aug. 23
--------------------------------------------------------
Creditors of Ateya Builders Limited and Ateya Construction Limited
are required to file their proofs of debt by Aug. 23, 2024, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on July 18, 2024.
The company's liquidator is:
Digby John Noyce
RES Corporate Services Limited
PO Box 301890
Albany
Auckland 0752
GROWING SPACES: Court to Hear Wind-Up Petition on Aug. 2
--------------------------------------------------------
A petition to wind up the operations of Growing Spaces Limited will
be heard before the High Court at Auckland on Aug. 2, 2024, at
10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on June 11, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
R&V SHAREHOLDING: Creditors' Proofs of Debt Due on Aug. 26
----------------------------------------------------------
Creditors of R&V Shareholding Limited are required to file their
proofs of debt by Aug. 26, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on July 18, 2024.
The company's liquidators are:
Wendy Somerville
Malcolm Hollis
c/o PwC
PwC Christchurch
PO Box 13244
City East
Christchurch 8141
REETEC WINDOWS: Court to Hear Wind-Up Petition on Aug. 16
---------------------------------------------------------
A petition to wind up the operations of Reetec Windows Limited will
be heard before the High Court at Auckland on Aug. 16, 2024, at
10:45 a.m.
SD Aluminium Limited filed the petition against the company on June
21, 2024.
The Petitioner's solicitor is:
David Thomas Broadmore
c/o- Buddle Findlay
Level 18, HSBC Tower
188 Quay Street
Auckland 1010
SRD HOLDINGS: Creditors' Proofs of Debt Due on Aug. 14
------------------------------------------------------
Creditors of SRD Holdings Limited are required to file their proofs
of debt by Aug. 14, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on July 17, 2024.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
=================
S I N G A P O R E
=================
BIGTOYS ASIA: Court to Hear Wind-Up Petition on Aug. 16
-------------------------------------------------------
A petition to wind up the operations of Bigtoys Asia Pte Ltd will
be heard before the High Court of Singapore on Aug. 16, 2024, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
July 22, 2024.
The Petitioner's solicitors are:
M/s Advent Law Corporation
111 North Bridge Road
#25-03 Peninsula Plaza
Singapore 179098
LIPPO MALLS: Fitch Lowers IDR to 'C' on Distressed Debt Exchange
----------------------------------------------------------------
Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC'.
Fitch has also downgraded the rating on LMIRT's senior unsecured
notes due 2026 to 'C' from 'CCC' and revised the Recovery Rating to
'RR6' from 'RR4'. The notes are issued by LMIRT's wholly owned
subsidiary, LMIRT Capital Pte. Ltd., and are guaranteed by
Perpetual (Asia) Limited in its capacity as trustee of LMIRT. All
ratings have been removed from Rating Watch Negative, on which they
were placed on 1 July 2024.
The downgrade follows LMIRT's announcement that it will proceed
with a tender offer, subject to the satisfaction of the conditions
in the offering memorandum. Fitch believes the tender offer
constitutes a distressed debt exchange (DDE), as the transaction
will lead to a material reduction in terms and, in its view, it
allows the issuer to avoid an eventual probable default.
Fitch will downgrade LMIRT's IDR to 'Restricted Default' (RD) on
completion of the DDE, and reassess the ratings in line with the
post-restructuring capital structure.
KEY RATING DRIVERS
DDE Drives Downgrade: Fitch regards LMIRT's exchange offer as a
DDE, as Fitch believes there is a material reduction in the
original terms and that the transaction allows the issuer to avoid
an eventual probable default, given the trust's untenable liquidity
profile. LMIRT said on 12 July that it received valid tenders on
USD125.9 million of notes due 2026 (84.8% of outstanding notes). It
also received valid consents to remove material covenants from no
less than a majority in aggregate principal amount of the notes due
2026.
Increased Subordination of Unsecured Debt: The revision of the
Recovery Rating on LMIRT's senior unsecured notes to 'RR6' from
'RR4' reflects significantly lower unsecured recovery prospects
following the drawdown of the IDR2 trillion secured term loan,
which ranks ahead of the notes, to fund the tender offer.
Post-tender offer, the proportion of secured term loans will
increase to above 95% of total debt, resulting in increased
subordination of unsecured noteholders.
Gearing Ratio Above Regulatory Ceiling: LMIRT estimates that its
regulatory gearing ratio, or debt/total assets, could be above the
regulatory ceiling of 45% at end-June 2024 due to recent rupiah
depreciation against the Singapore dollar, exacerbating asset value
declines due to the portfolio's weakening performance in the last
18-24 months. This limits the trust's ability to obtain debt other
than for refinancing, such as to fund capex, weighing on LMIRT's
financial flexibility.
Weak Operational Performance: Fitch forecasts net property income
of SGD121 million in 2024, lower than in 2022 and 2023 due to the
progressively lower occupancy rate (1Q24: 79.5%). This is mainly
due to the early termination of several lease agreements and
downsizing by supermarket anchor tenants Carrefour and Hypermart,
respectively. Fitch expects the trust to face challenges in raising
occupancy in the next 12-18 months given difficulties in funding
refurbishment, which will further pressure LMIRT's operational
performance.
Limited Unencumbered Assets: Fitch believes LMIRT has pledged the
majority of its Hak Guna Bangunan (a type of land title) and strata
malls following the increase of its secured loan facility to IDR4.5
trillion (SGD372 million) in June 2024 to fund the tender offer.
The remaining unencumbered assets are mainly malls with land titles
under agreement-based schemes, which are difficult to mortgage.
Hence, Fitch believes it would be difficult for LMIRT to raise
further secured debt.
Perpetual Securities Treated as Equity: Fitch treats LMIRT's SGD260
million in perpetual securities, issued in 2016 and 2017, as 100%
equity due to strong going-concern and gone-concern loss absorption
features. This also factors in LMIRT's intention to maintain the
securities as a permanent part of its capital structure. The trust
did not call the SGD140 million and SGD120 million securities
callable in 2021 and 2022, respectively, amid weak market
sentiment. The trust cancelled the perpetuals' coupons to preserve
cash since March 2023, which has prevented it from paying common
dividends
DERIVATION SUMMARY
LMIRT's Long-Term IDR of 'C' and the 'C' rating on its senior
unsecured notes reflect the company's announced exchange offer on
its outstanding unsecured notes due February 2026. Fitch believes
the tender offer constitutes a DDE.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Net property income, including from Lippo Mall Puri, of SGD121
million in 2024 and SGD127 million in 2025.
- Capex of SGD33 million in 2024 and SGD13 million in 2025.
- No dividend payout and perpetual coupon distribution in 2024 and
2025.
RECOVERY ANALYSIS
Fitch assumes LMIRT will be liquidated in a bankruptcy rather than
continue as a going-concern, as Fitch believes creditors are likely
to maximise recoveries by selling the trust's investment
properties.
- Fitch calculates a liquidation value under a distressed scenario
of SGD0.6 billion at end-March 2024.
- Fitch uses stressed capitalisation values to arrive at the
distressed valuation for LMIRT's investment properties. Fitch uses
an 11% capitalisation rate as a reference, above the average 10%
capitalisation rate of the most recent divestments and acquisitions
in 2020. This is due to the portfolio's weaker performance since
then and challenging recovery prospects. Fitch applies the
capitalisation rate to its estimated net property income for the 12
months to end-March 2024 from LMIRT's Hak Guna Bangunan and strata
malls only, as Fitch believes there is higher execution risk in
selling malls with agreement-based scheme land titles.
- The estimate also reflects its assessment of the value of trade
receivables under a liquidation scenario, with a 75% advance rate.
Fitch believes a 25% discount is sufficient to cover potential bad
debt.
These assumptions result in a recovery rate corresponding to a
Recovery Rating of 'RR6' for the outstanding senior unsecured
bonds.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch will reassess LMIRT's capital structure and cash flow
prospects after the completion of the DDE to determine the
Long-Term IDR and senior unsecured rating.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch will downgrade LMIRT's Long-Term IDR to 'RD' when the DDE
is completed, and then reassess the company's IDR based on the
post-restructuring capital structure.
LIQUIDITY AND DEBT STRUCTURE
Untenable Liquidity: Fitch expects LMIRT's cash on hand and
recurring cash flow to be sufficient to cover interest payments in
the next two years. Liquidity, however, is tight against increased
capex and the repayment of its 2026 notes during that period. Given
challenges in funding capex, LMIRT has limited ability to reduce
its regulatory gearing below the 45% threshold in order to improve
its financing flexibility and draw on new debt.
LMIRT has restricted cash of SGD19.1 million in debt service
reserves, which can be used to service bank debt in the event its
cashflows fall short, but the reserves will need to be replenished
to avoid an event of default.
ISSUER PROFILE
LMIRT is a Singapore-listed real-estate investment trust with a
portfolio of 22 shopping malls and seven retail spaces in
Indonesia. The portfolio was valued at SGD1.6 billion as of
end-March 2024.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Lippo Malls Indonesia
Retail Trust LT IDR C Downgrade CCC
LMIRT Capital Pte. Ltd.
senior unsecured LT C Downgrade RR6 CCC
MIDAS INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 16
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A petition to wind up the operations of Midas International Pte Ltd
will be heard before the High Court of Singapore on Aug. 16, 2024,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
July 17, 2024.
The Petitioner's solicitors are:
Adsan Law LLC
300 Beach Road
#26-00 The Concourse
Singapore 199555
SCSC SINGAPORE: Court Enters Wind-Up Order
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The High Court of Singapore entered an order on July 5, 2024, to
wind up the operations of SCSC Singapore Pte. Ltd.
Luther Corporate Services Pte. Ltd. filed the petition against the
company on June 7, 2024.
The company's liquidator is:
Tan Eng Soon
7500A Beach Road
#05-303 The Plaza
Singapore 199591
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S O U T H K O R E A
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QOO10 GROUP: FTC Inspects Units as Bankruptcy Jitters Escalate
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The Korea Times reports that the nation's antitrust watchdog
initiated an emergency on-site inspection into the headquarters of
TMON and WeMakePrice, July 25, as the two online shopping platforms
face potential insolvency, with reported delays in payments to
sellers and refunds to customers.
According to the report, the sudden financial troubles of the
struggling shopping platforms were precipitated by poor financial
management by Qoo10, a Singapore-based e-commerce giant that
operates the two Korean subsidiaries.
During a press conference, Fair Trade Commission (FTC) Chairman Han
Ki-jeong said the authority will investigate whether the companies
are processing refunds to customers promptly. Additionally, the FTC
established a special response team at the Korea Consumer Agency to
facilitate collective dispute mediation.
"We will do our best to minimize damage to customers, and inspect
whether the troubled firms are offering refunds to clients who
canceled their orders from the platforms," the report quotes Han as
saying.
"We will also team up with financial authorities and relevant
organizations to prevent the damage from spreading further to more
customers and sellers."
Since earlier this month, TMON and WeMakePrice have failed to
disburse earnings to sellers on their platforms, the Korea Times
relates. Beginning on July 23, sellers began to leave the platforms
in droves due to mounting fears that they will not be paid.
Customers who purchased online tickets for flights and hotel
reservations using these platforms are also encountering
difficulties in obtaining refunds, amid rising concerns about
possible financial defaults.
According to data from the consumer protection agency, the number
of consumer grievances about the platforms has surged this week,
with more than 2,300 telephone complaints being made since July 23,
the report relays. Most of the complaints were about refunds for
online travel package purchases, according to the FTC.
The head of WeMakePrice issued a public apology on July 25 for the
inconvenience caused to customers. He also committed to ensuring
refunds for affected customers.
"We are capable of covering refunds to customers," WeMakePrice
co-CEO Ryu Hwa-hyun said.
"We will compensate them and do all we can so that small business
owners and the self-employed can recover from damages."
According to the Korea Times, financial authorities have not yet
determined the exact extent of the damage, but estimates suggest it
could exceed KRW170 billion ($122.8 million).
Both shopping platforms are in the process of offering refunds to
customers, though the timeline for completing these refunds remains
uncertain.
The Financial Supervisory Service (FSS) also dispatched a group of
inspectors to the headquarters of the two companies. According to
the financial watchdog, six prosecutors are inspecting the case and
checking the scale of damage.
"Starting from June 2022, the authority has monitored their
deteriorating financial circumstances, and the supervision of
payment delays commenced in July of this year," the Korea Times
quotes FSS Governor Lee Bok-hyun as saying. "We will report further
details involving the case to the public as quickly as possible."
The Korea Times adds Finance Minister Choi Sang-mok also ordered
relevant government authorities to strengthen monitoring of the
latest incident.
"We will make efforts to prevent the spread of damage by thoroughly
monitoring any updates on the incident under close collaboration
with the FTC, the FSS and the Financial Services Commission," Choi
said.
Qoo10 retails e-commerce products. The Company offers personal
care, sports apparel, consumer electronics, home furnishing, food,
toys, and other consumer products. Qoo10 serves customers
worldwide.
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S U B S C R I P T I O N I N F O R M A T I O N
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